House and Goods Insurance
Question:
My family has house insurance whereby if a) someone broke in and stole goods, or b) if damage such as fire occurred, we would receive a payout by the insurance company. Is this type of insurance also haram?
Answer:
In the name of Allah, Most Compassionate, Most Merciful,
Yes, this type of house insurance or goods insurance is unlawful (haram) and should be avoided. All types of prevalent insurances are unlawful, for they have an element of either Riba, chancing or both, as has been explained in detail in many earlier posts. Search the archives on this website & www.sunnipath.com
And Allah knows best
[Mufti] Muhammad ibn Adam
Darul Iftaa
Leicester , UK
Question #: 5355
Published: 30/06/2004